PayWatch:

Insurance CEO Drives Down Everyone’s Care but His Own
by James Parks

When William McGuire retires as CEO of UnitedHealth Group, he won’t have to worry about his health care. His contract requires the insurance company pay for lifetime health care for him and his wife. Not that he really even needs help paying for health care: As of Dec. 31, 2004, McGuire had $1.1 billion in unexercised stock options and cashed out more than $114 million in stock options during 2004.

So why is McGuire working overtime to lower the quality of care for working Americans?

McGuire is a big player in pushing for health savings accounts (HSAs)—employment-based programs in which consumers pay for their own health care through accounts established with a set amount of money available. President George W. Bush has made such accounts a cornerstone of his so-called health care reforms.

McGuire and others are peddling HSAs as a way to cut back on health care costs—but in fact, consumers would bear the cost burden. In an HSA, consumers would face a minimum of a $2,000 deductible for a family, but as high as $10,000 in some cases—before their coverage actually kicks in.

While working families likely won’t benefit, big employers like UnitedHealth Group will because they can shed current health care costs by shifting workers into high-deductible plans.

In sum, HSAs will lower health care quality and raise premiums by increasing out-of-pocket expenses for workers, cause employers to shift costs to workers and encourage families to give up preventive care, which would increase the likelihood of serious illnesses.

McGuire also has the fourth highest pension deal among corporate CEOs, according to the newly released AFL-CIO Executive PayWatch, with a retirement package worth $5.1 million. Meanwhile, his 55,000 employees—like other employees across the nation—have no legal right to retiree health care coverage or pension benefits.

Meanwhile, UnitedHealth Group is one of the insurance companies that received quick federal approval to be the first Medicare drug discount card providers when Bush’s Medicare reform took effect.

Coincidentally…McGuire raised more than $100,000 for the Bush campaign.